Tag Archives: alternative asset management

Fortress Investment Group and its Operations

Fortress Investment Group was the first organization that is privately held to have gone public. The company had its shares trading on the New York Stock Exchange. The organization has been acquired by SoftBank, something that will make it be delisted from the stock exchange market. SoftBank is a global holding corporation which is ranked top 58 when it comes to organizations whose stocks are traded publicly in the world by Forbes. With the acquisition, Fortress will be running its activities independently. Moreover, Fortress Investment Group will maintain its leadership team including Wes Edens, the co-chair and Randal Nardone, the CEO of the group. Many will wonder which kind of acquisition is this, but there good reasons behind it.

SoftBank had to go through a lot to acquire Fortress Investment Group. However, all the details of the deal were finalized in December 2017. The deal got approval from the shareholders of Fortress Investment Group, and this came as a surprise to many. SoftBank is a company that is devoted to funding technology-based organizations while on the other hand, Fortress Investment Ground concentrates on alternative asset management. Both organizations are leaders in the world when it comes to their sectors. This move displays the interests that SoftBank has in the alternative asset management sector. It clears indicates that the Japanese corporation wants to become the largest organization in the world dealing with investment management. The fact that fortress Investment group has a lot of assets under its control must have been the attraction part that motivated SoftBank into acquiring it.

According to Softbank, it has not been a smooth ride to acquire Fortress Group. Being a foreign organization, it had to go through the Committee on Foreign Investments to purchase an organization in the United States. This takes place to ensure national security. This made SoftBank sign a deal that it will have almost no say concerning how Fortress Group handles its assets.

However, this did not come as a surprise to SoftBank’s founder Masayoshi Son. He knew what was ahead of him when it comes to acquiring an organization in the United States but he was ready to go through it all to attain his goals. He had tried early to charm Trump in one of his Visits to Trump power and even promised to invest $50 billion in the United States. The shareholders of Fortress Group will achieve 8.08 per share after Softbank paid 39 percent of the deal.

LinkedIn: https://www.linkedin.com/company/fortress-investment-group